Do Workers Make Good Neighbours? The Impact of Local Employment on Young Male and Female Entrants to the Labour Market

Matthieu Solignac, Maxime Tô
2018 Annals of Economics and Statistics  
This paper investigates the social endogenous eect linking the employment probability of young workers entering the labour market to the local employment rate. We focus on the transition from school to work, using a representative sample of youths leaving the French educational system in 1998 and 2004. We identify the causal eect of local employment rate using a neighbourhood xed-eect strategy (Bayer et al. (2007) ). We provide evidence that the within-neighbourhood random allocation assumption
more » ... is likely to hold. The results show that an individual's own employment is strongly aected by the share of working people in their neighbourhood, estimates being higher for high-school dropouts. Results also reveal gender dierences, suggesting that young people are more sensitive to same-sex neighbours.
doi:10.15609/annaeconstat2009.130.0167 fatcat:vhi7zwocqbhlbmqgtam6hdohxq